Should you buy a PC directly from a manufacturer? Custom
configure one to suit your specific tastes? Lease or buy? Today,
you have numerous options when it comes to purchasing a PC.
Traditional computer manufacturers are beefing up their
built-to-order capabilities, retail stores such as CompUSA are
expanding their customer service centers to draw in more business
customers, and myriad companies are rolling out new and improved
leasing programs.

Bombarded with an ever-growing number of choices, how should a
small business go about selecting a PC? Clearly, the answer depends
on your needs, level of computer expertise and budget. But no
matter what your situation, experts say the first step is to
accurately assess your technology needs. Begin by determining
exactly what you want to accomplish: Do you need a computer for
general office productivity, or to run a specialized accounting
package specific to your industry? Only after you have a thorough
understanding of your needs should you make your next move toward
buying a PC.

Get The Scoop

After assessing your needs, doing some research is a must.
Online resources should be your first stop. A number of Web sites
can be quite useful for finding out about PC products and their
prices, making it easy to comparison-shop online. Some computer
manufacturers even have small-business Web sites showcasing
products designed specifically for small companies so you don't
have to sift through consumer models to get to what you need. In
addition, most of these Web sites will let you order PCs directly
online.

Try Hewlett-Packard's Small Business Home Page (http://www.hp.com/sbso): Click on the
Helping You Choose feature within the Business Toolkit to access a
listing, by type, of Hewlett-Packard's entire line of
small-business products. Clicking on the type of PC you're
interested in aligns similar models side by side for an easy
comparison. There's also a Best Offers area that lists the best
deals Hewlett-Packard has to offer.

Computer Discount Warehouse (http://www.cdw.com) has a CDW Compare
feature that lets you compare and contrast up to five systems
simultaneously. Select a class of products and a price range, click
on Compare, and you'll get a look at all the PC models that
meet your specifications, complete with links to the latest
magazine reviews of these products. What's more, a Hot Deals
section gives you the scoop on companies offering rebates, savvy
bundling offers and dirt-cheap prices.

In addition to online information, sound out your peers and ask
for their opinions on computer manufacturers, models and methods of
purchase.

To The Source

When it comes to purchasing a PC, there are a number of sources
to investigate, including retail, buying direct from the
manufacturer or going through a reseller (also called a value-added
reseller). Whom you purchase from should largely depend on the
level of service you want and your budget.

If you need hands-on service or want to speak with someone in
person, consider a retail store. Retail outlets such as CompUSA
offer a broad selection of products you can test out before you
buy. They also usually have tech support service centers nearby, so
you can take your PC in for service should you experience any
problems.

Some experts, however, caution small businesses against buying
via retail. For one thing, they say, prices are typically higher
than those of other sources. What's more, salespeople at retail
outlets typically only recommend what's in stock, which could
lead you to purchase products that don't suit your needs.
"It doesn't make sense for small businesses on tight
budgets to pay for features, functions and capabilities they
don't need," says Patrick T. Somers, president of Business
First Inc., an IT consulting firm in Exton, Pennsylvania.

Companies providing direct sales, such as Gateway and Dell,
offer consumers the freedom to pick up the phone and order
state-of-the-art machines at prices that are often hundreds of
dollars less than retail. These companies will also let you
configure a machine to your exact specifications, so you can get a
larger hard drive or better monitor, for instance. Also, many
manufacturers offer models designed specifically for small
businesses, so you won't pay for multimedia speakers or a sound
card you don't need.

On the downside, buying direct often means you sacrifice local
tech support. Also, your choice of products may be more limited, so
it's even more important to investigate several companies to
find out which one has the best products for you.

Small businesses in need of very personalized service should
consider buying from a reseller that can custom-design computer
solutions, install equipment and really get to know your computer
and your business inside and out. While they're generally more
expensive, they offer an extra level of service. "What
[computer resellers] bring to the table is the big picture,"
says Stephen Allen, president of Integrated Technology Systems, a
computer consulting firm in New York City. "We're able to
design a complete solution for companies that involves hardware,
software and [addresses] your general business concerns." (For
more information on computer resellers, see "Bytes,"
May.)

On Second Thought . . .

There's a lot more to good buying habits than selecting a
source--you should also consider what brand would be best for you.
Sticking with well-known computer companies is a wise move. While
off-brand equipment manufacturers offer very tempting deals,
it's probably best to go with a name you recognize. "We
tell clients to stick with well-known names because they're
running a small business and don't have time to be concerned
with computer systems that don't work," Somers says.
"If you stick with a bigger brand, you'll pay a slight
premium, but your chances of having a problem are much
lower."

With software companies continuing to release programs that take
up increasing amounts of hard-drive space, another good idea is to
purchase a system that gives you room to grow. Buy a computer
that's a little better than you need today, so you can use the
computer for at least two years and know your software will
continue to perform well.

Service has become an important factor as well. In an age of
hefty data storage and multiple components like modems and
scanners, computer problems can easily arise. That's why
experts generally recommend purchasing at least a basic service
contract. Consider it money well spent--it's generally a small
price to pay compared to what it would cost your company if your PC
went on the blink. What's more, the price of materials and
labor for repairing your computer can easily run much higher than a
basic service contract.

When considering a service contract, make sure it offers a
warranty, on-site service and technical support. One year will fly
by, so look for a three-year contract with at least one year of
on-site support. Somers recommends getting three years of on-site
service if you can afford it.

Finally, consider leasing a PC. A lease lets you spread out the
payments, so if you're low on cash, you don't have to
scrimp to get what you need. Many leasing companies are simplifying
lease terms and speeding up approvals, making them all the more
attractive. Furthermore, leasing keeps the latest equipment in your
hands. Instead of risking obsolescence, you can return the PC in
two or three years for a brand-new model that runs the latest
software. Remember: It's always a good idea to have your
accountant look over your leasing contract before you sign on the
dotted line.

To get the best deals, analyze your business needs, service
requirements and range of purchasing options. It takes time to
investigate the alternatives, poll peers and negotiate the best
arrangement. But in the end, covering all your bases is time well
spent if you want to avoid getting stuck with a PC that doesn't
fit your needs.

Shopping Guide

Ready to go PC shopping? Here are some important questions
you'll want to ask:

1. What are the PC's basic components? Find out about
processor speed (we suggest starting at no less than 233 MHz),
memory (get as much as you can possibly afford) and hard-drive size
(3GB minimum). What extras does the PC come with?

2. Is upgradability an option? You'll be able to extend
the life of your equipment if you can install additional hard
drives and memory. Find out exactly how much you'll be able to
upgrade your machine.

3. What kind of communication capabilities does the PC
have? Ask if it comes with a modem (if so, what speed?) and any
special communications software.

4. What about additional capabilities? For instance, find
out about specifications for interfacing with external devices,
slots for installing such extras as a network or sound card,
etc.

5. What kind of service contract is available? You'll
want to know what company is offering the service and the basic
contract terms, including length of service, type of service
(on-site, phone support, etc.) and the costs for purchasing
additional service.